TaxSmith now offers tax relief

For those of you that are struggling with back taxes or IRS penalties may have a new option. Taxsmith.com.The website recently launched this service to provide immediate solutions to individuals struggling with Penalties by the IRS and unpaid back taxes.

Federal income taxes are imposed by local, state and by government agencies on every single individual of the United States. Becoming delinquent on your federal taxes could spell a slew of problems from an individual including higher interest rates, late fees, and even jail time. This new service can help those individuals that are stuck in this type of situation .

TaxSmith can now help individuals and entities that are burdened by this financial hardship brought on by unpaid taxes and overdue IRS fees.

Reliance on tax software like Turbotax is subject to human err and complications that could lead to mistakes in filing. Using low level amateur accounting firms won’t give you the level of customer service that this new TaxSmith seeks to offer. TaxSmith claims to offer consultation, forms, and service unmatched to any others.

Only time will tell whether or not TaxSmith will become a leader in the tax filing field. Please check back online to see how TaxSmith with fare in the reviewsphere. One thing we know for sure. With the fiscal cliff weighing down heavily on us and the future of the tax code being uncertain, we need a lot more services like TaxSmith around.

 

 

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Posted by Taxmaster - December 18, 2012 at 6:28 pm

Categories: Income Tax, Tax Law   Tags: , , , , , ,

Are new taxes fair?

The presidential election may have decided in favor of Obama, but a creepy reminder of Mitt Romney tax policy keeps creeping into view. With the fiscal cliff just around the corner every American is waiting with bated breath for these tax talks to be resolved.

A new idea from an unlikely source is getting bipartisan attention as a way to broaden the base of taxpayers while limiting loopholes and deductions taken by the wealthy. This proposal that just so happens to be the brainchild of the failed presidential contender Mitt Romney would limit the amount of itemized deductions to a certain monetary limit.

“There’s renewed interest” in the cap on deductions, Senator Kent Conrad, the North Dakota Democrat who heads the Senate Budget Committee said.

This seems like a too good to be true generic way of taxing everyone equally without getting any sore feelings from lobbyists or or powerful interests. Since it seems as if no one can pin down the actual specifics of any plan a politician puts forward until the thing is passed and already effecting our lives. Tax experts disagree that this methodology would serve as a quick fix for our broken tax system claiming that it would disproportionately effect different tax bases.

But this solution doesn’t tackle the larger tax preferences, which make up a large part of the Buffet rule, saying that no wealthy person should be paying less in taxes than their secretary.

These experts have their suspicions that this tax proposal may be a wolf in sheep’s clothing that disproportionately increases the tax burden on the poor and middle class while do nothing to curb the favorable tax environment for the wealthy. This would also effect the entire donor model which so many nonprofits, schools, and museums require to survive.

Martin Feldstein, a Harvard economist and the chairman of the Council of Economic Advisers under President Reagan, thinks that this methodology is a great way to lower the deficit. His proposal calls for capping deductions at 2 percent of income for all individuals.

But this cap on deductions would hit the lower socioeconomic classes where they need it the most… in the charitable sector. That is because this deduction is largely discretionary and at the will of the taxpayer to how much he or she would deduct from their tax bill.

Will this cap on deduction send the charitable sector or our economy into dire straights or is capping deductions that silver bullet needed put the breaks on the economy that is heading towards a fiscal cliff.

 

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Posted by Taxmaster - December 17, 2012 at 7:55 am

Categories: Federal Tax, Income Tax, Tax Law   Tags: , , , , , , , ,

Tax hikes on the rich “negligible” for growth on the economy

Washington- A recent report was re released after Republicans tried to claim that tax hikes on the wealthy would be detrimental to growth in the economy. The report states that revoking the Bush era tax cuts on the wealthiest Americans will have a “negligible” impact on the economy. The report also states that the the Bush Era tax cuts did very little to help spur the growth of the economy. The report also stated that the Bush Era tax cuts helped fuel the income inequality among income classes.

“Analysis of such data conducted for this report suggests the reduction in the top tax rates has had little association with saving, investment, or productivity growth,” the study says. “It is reasonable to assume that a tax rate change limited to a small group of taxpayers at the top of the income distribution would have a negligible effect on economic growth.”

The study takes into account tax rates and economic growth that dates back to the world war 2 era. Needless to say Democrats pounced on the opportunity to prove to Republicans that tax cut for the wealthy don’t necessarily equate to growth and that the top two percent of earners should go back to Clinton Era tax rates when growth was substantial. Republicans, as they always seem to, complain and swear that raising taxes on the wealthy will only bring gloom and doom for the US economy.

“What this report demonstrates is at the core of the debate we’re having right now,” said Maryland Rep. Chris Van Hollen, the top Democrat on the House Budget Committee, adding that it “put a stake in the heart of the Republican argument that small increases in marginal tax rates for wealthy individuals somehow hurt economic growth.” He also noted that during the Clinton years with tax hikes the US economy was doing a lot better off than when Bush introduced his tax cuts.

“What this CRS report does is take away the last little fig leaf that [Republicans] had to justify big tax cuts for very wealthy individuals,” Van Hollen said.

“Republicans have simply failed to face up to the reality,” said Rep. Sander Levin (D-Mich.), the top Democrat on the House Ways and Means Committee. “I hope that this CRS report will add further impetus to the speaker to sit down with Republicans, because when I’ve talked to a few of them, I don’t think they’ve had this discussion.”

Republican lawmakers claim that the report was written by a left wing study group and that its findings are biased and therefore fallacious.

This is a continuing trend with Republicans denying the facts when they stare them point blankly in the face.  Maybe this report will be the wake up call needed to raise taxes on the top 2 percent.

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Posted by Taxmaster - December 16, 2012 at 3:33 am

Categories: Federal Tax, Income Tax, Tax Law   Tags: , , , , , , , , , ,

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